In a bold move responding to the US’s ongoing tariff increases, China has announced it will raise tariffs on all US goods from 84% to 125%, effective April 12, 2025. This decision follows the White House’s recent clarification that tariffs on Chinese imports had reached 145%, further escalating trade tensions between the two countries.
The Chinese Ministry of Finance made the announcement on Friday, stating that this latest increase is a direct response to the US’s decision to impose higher tariffs. The Chinese government also made it clear that it would no longer entertain any additional US tariff hikes, signaling that further increases from Washington would be disregarded entirely. According to the statement, the Chinese market can no longer accommodate US goods under the current tariffs, and the situation has become economically unviable for both sides.
“Given that there is no longer any possibility of market acceptance for US goods exported to China under the current tariff levels, if the US side subsequently continues to impose tariffs on Chinese goods exported to the US, the Chinese side will pay no attention to it,” the Ministry of Finance stated.
The move comes amidst rising frustrations over the ongoing tariff war, which has already put significant pressure on global trade. China’s decision to raise tariffs has had an immediate impact on financial markets. S&P 500 futures saw a decline, while the Hang Seng China Enterprises Index pared back its earlier gains. The US dollar also extended its losses, reflecting investor unease following China’s announcement.
In a statement responding to the US’s recent tariff hikes, China’s Commerce Ministry expressed deep dissatisfaction with Washington’s approach, calling the actions economically meaningless and accusing the US of using tariffs as a “tool for bullying and coercion.” The ministry labeled the current situation as a “joke,” criticizing the US for treating tariffs as part of a “numbers game” that has little bearing on actual economic impact.
This escalation in the trade war has significant implications not just for the US and China, but for the broader global economy. While the US has raised tariffs on Chinese goods to 145%, China’s new tariff rates on US goods will only intensify the already strained relations between the world’s two largest economies. The dispute is not only about trade imbalances but also the strategic competition between the two nations, particularly in the areas of technology, intellectual property, and geopolitical influence.
Both countries have long used tariffs as leverage in negotiations, but with no immediate resolution in sight, the escalating tariffs are expected to have lasting effects on global supply chains, businesses, and consumers worldwide.–BLOOMBERG
